Fundamental overview:
NZD/USD is expected to consolidate with risks skewed lower after hitting a three-month high of 0.7740 on Friday. NZD/USD is undermined by the softer-than-expected New Zealand Q1 CPI of -0.3% on-quarter (versus forecast -0.2%), increased aversion to investor risk and soft dairy prices. But NZD/USD losses are tempered by the NZD/USD interest differential.
Technical comment:
The daily chart is still positive-biased as the MACD and stochastics are bullish, although latter is at overbought levels, five-day moving average is above 15-day moving average and is advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.7740 and the second target at 0.7790. In the alternative scenario, in case the price moves below its pivot points, short positions are recommended with the first target at 0.7575. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.7540. The pivot point is at 0.7620.
Resistance levels:
0.7740
0.7790
0.7845
Support levels:
0.7575
0.7540
0.75
